Wellington doctors Kathryn Percival and David Pirotta, who stand to lose more than $400,000 in down payments if their Marlborough Sounds modular home is not delivered. Photo / Mark Mitchell
Wellington doctors Kathryn Percival and David Pirotta, who stand to lose more than $400,000 in down payments if their Marlborough Sounds modular home is not delivered. Photo / Mark Mitchell
The minority shareholder of Podular Housing Systems is opposing the appointment of liquidators and wants them replaced.
Charles Innes, who owns 5 per cent of the company which can’t build many people’s homes and is forecast to lose $5.2 million, said the liquidation went ahead without his approval.
Innes said he never agreed and never signed any documents saying he did.
But liquidator Simon Dalton of Gerry Rea today defended his position as joint liquidator with Ben Francis, but acknowledged he knew Innes was unhappy.
“Mr Innes has been raising concerns after the appointment. We have some concerns with his reasoning for raising those concerns.
“But we took a legal opinion on the appointment that it was acceptable,” Dalton said today.
Asked why the first liquidators’ report referred to the “shareholders’ resolution” to put the company into liquidation - pointing to both men agreeing - Dalton acknowledged liquidation was only at the request of 95 per cent owner Ilan Gross.
Creditors are due to meet tomorrow to discuss the situation and Dalton said he hopes to be able to appoint a liquidation committee of around five creditors whose role will be able to assist him and Francis.
“The meeting will be an opportunity for creditors to ask questions and for us to share more information. The committee will be able to help us collect and share information,” Dalton said.
Innes said from Indonesia, where he is working: “I didn’t agree to Gerry Rea’s appointment or the majority shareholder putting the company into liquidation because it wasn’t in the best interests of the creditors.
The T Series by Podular was advertised as selling for under $100,000. Photo / Podular
“I emailed Dalton last Thursday saying I didn’t think his appointment was valid and I wanted a legal opinion. Barrister Kathryn Lydiard, acting for the liquidators, sent me a copy of the affidavits filed in the High Court on Friday afternoon.
“The liquidators want to go to court to get a ruling to validate them. I intend to file an affidavit saying that I didn’t agree to the liquidation. I wanted to put the business into voluntary administration and an administrator could have worked better with homeowners than a liquidator. The homeowners might then have got their buildings. Under a liquidation, I think they are less likely to.”
Innes instead wants Tony MacGuinness of BakerTilly appointed because he said MacGuinness had experience in the field. MacGuinness is one of the liquidators of New Plymouth’s Tiny Homes.
Ilan Gross, with 95 per cent of Podular, said today he opposes liquidators being changed: “Innes has a lot to benefit from that”.
Podular’s liquidators identified more than $2m in deposits paid by customers whose homes weren’t started. That money was also in the general trading account so customers’ deposits couldn’t be identified.
“The liquidators have identified in excess of $2,000,000 of deposits that have been paid by customers for which work has yet to be started,” the initial Gerry Rea report said.
Podular’s M Series home which was publicised as starting from $366,661 with land excluded. Photo / Podular
“The deposits were held in the company’s general account and do not appear to have been spent for the purposes for which they were paid,” the Gerry Rea report added.
Dalton and Francis also raised questions about how Podular was being run: “The liquidators have concerns regarding the conduct of the management of the company and will conduct an investigation into the failure of the company.”
The Herald highlighted the plight of some Podular customers last month, including Wellington doctors Kathryn Percival and David Pirotta who estimated $500,000-plus losses.
Podular was to build their modular home in its factory, then deliver it completed to the couple’s Marlborough Sounds property within months. Plans were finalised last August, yet they still don’t have their house.
